(MENAFNEditorial) WILMINGTON Del. April 27 2016 – DuPont (NYSE: DD) a science company that brings world-class innovative products materials and services to the global marketplace today announced first-quarter 2016 operating earnings1 of $1.26 per share compared with $1.26 per share in the prior year. GAAP2 earnings were $1.39 per share compared with $1.11 per share in the prior year. Refer to Schedule B for details of significant items.
First-quarter sales totaled $7.4 billion a decline of 6 percent versus prior year due to negative impacts from currency (4 percent) and volume (2 percent).
Today DuPont’s board of directors approved a second-quarter dividend of $0.38 per share the 447th consecutive quarterly dividend since the company''s first dividend in the fourth quarter of 1904. The second-quarter dividend of $0.38 per share of common stock is payable on June 10 2016 to stockholders of record at the close of business on May 13 2016. Regular quarterly dividends of $1.125 per share on the $4.50 series preferred stock and $0.875 cents per share on the $3.50 series preferred stock also were declared both payable on July 25 2016 to stockholders of record as of July 8 2016.
“Solid execution local price and product mix gains and higher corn area led to a strong start to the year for our Ag business” said Ed Breen Chair and CEO of DuPont. “Our other businesses generally performed well slightly above our expectations. We made progress with our global cost savings and restructuring plan and are on track for savings of $730 million in 2016 including significant improvements in our corporate cost performance.” He added “We also continued to achieve key milestones in our intended merger of equals with Dow and as we look ahead to the rest of the year we remain focused on accelerating our value-creation work investing in our core franchises and closing the intended merger of equals.”
First-Quarter Highlights
• First-quarter operating earnings1 were $1.26 per share equal to the prior year. Excluding $0.10 per share of negative impact from currency operating EPS1 increased 8 percent versus prior year. GAAP2 earnings per share were $1.39 versus $1.11 in prior year.
• Operating costs3 declined by approximately $135 million a 7 percent reduction versus prior year. Corporate expenses on an operating earnings1 basis declined 44 percent versus prior year.
• Local price and product mix gains of 2 percent in Agriculture and 3 percent volume growth in Nutrition & Health were more than offset by declines in most of the other segments resulting in sales declining 2 percent excluding currency. Currency negatively impacted sales by an additional 4 percent.
• Agriculture sales reflected benefits from local price and product mix higher corn area and a strong start to the North American corn season more than offset by negative currency impact and lower crop protection and soybean volumes.
• Segment pre-tax operating earnings1 of $1717 million included approximately $110 million of negative impact from currency. Operating margins expanded in Protection Solutions Industrial Biosciences Nutrition & Health and Agriculture.
DuPont now expects full-year 2016 operating earnings1 to be in the range of $3.05 – $3.20 per share an increase of $0.10 per share from the previous outlook.
2016 Outlook
The company now expects full-year 2016 operating earnings1 to be in the range of $3.05 to $3.20 per share up from prior guidance of $2.95 to $3.10 per share an increase of 10 to 16 percent over the prior year. The estimated negative currency impact for full year 2016 is now expected to be about $0.20 per share versus a previously communicated estimate of $0.30 per share. The U.S. dollar has weakened against most currencies since the estimate provided on January 26 2016. The estimated headwind from a higher base tax rate in 2016 is now expected to be about $0.10 per share. In addition the company’s guidance includes higher corn planted area than previously forecast and a headwind from the impact of Pioneer’s transition to an agency-based route-to-market approach in the southern U.S. which will shift some sales from 2016 to the first quarter of 2017. The company continues to expect a benefit of $0.64 per share from the 2016 global cost savings and restructuring plan. For the first half 2016 the company expects operating earnings to be about flat with the prior year. Seasonal timing benefits realized through March from a stronger-than-expected start in Agriculture are anticipated to be offset in the second quarter.
Use of Non-GAAP Measures
Management believes that certain non-GAAP measurements are meaningful to investors because they provide insight with respect to ongoing operating results of the company. Such measurements are not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance.
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